Supercharge Your Savings with a Novated Lease
Pickerings Auto Group is here to help you buy your new car in the most tax-effective and stress-free way. We’re excited to offer you novated leasing powered by Novate My Car, Australia’s largest privately owned Salary Packaging and Novated leasing providers.
What Is Novated Leasing?
In a nutshell, a novated lease is an easy way to make major savings by buying a car without doing any additional work.
A novated lease is a three-way agreement between an employee, an employer, and a financier administered by Remunerator. The price of the car and all its associated running costs into one regular repayment. The repayment comes out of an employee’s salary before income tax is applied. This reduces an employee’s taxable income, meaning you can make income tax savings by getting a new car.
How Does it Work?
You don’t have to worry about being out of pocket when paying for your car and related expenses.
Novated leasing allows you to bundle all your car-related expenses, including the car's running costs, into one simple regular deduction.
We work with an employee to calculate the total amount for the lease and help you set annual running costs. This amount is broken down into regular repayments that are deducted as per your pay cycle.
Vehicle running costs refer to all the associated costs involved in running your car. This includes:
- Car Washes
- Any other costs that you need to pay on your car
This means no more out of pocket expenses for the duration of the lease!
Benefits of Novated Leasing
A novated lease is the most tax-effective way to buy and run your next car. With a novated lease, you don’t pay GST on the purchase price of your new car or it’s running costs.
Income Tax Savings
A novated lease allows you to pay for your new car and its running costs with pre-tax income. This will reduce your current taxable income, meaning you pay less income tax!
Novate My Car and Pickerings Auto Group work with you to set annual budgets for all your vehicle running costs, such as fuel, service and maintenance, tyres, carwash, registration, and insurance.
You can pay for all these expenses directly from your account. This means no more out-of-pocket expenses, as it’s already budgeted for!
We understand that everyone is different and leads the lifestyle they want. Our teams will ensure that your novate lease suits your circumstances and fits within your budgets.
We want you to get the car you want; at the price you want.
Novated Leasing for Employers
By offering novated leasing within your remuneration package, you will be contributing to an increased level of efficiency and productivity, as well as helping to retain talented personnel and create short- and long-term advantages for both the employer and employee.
How Does Novated Leasing Benefit Employers?
There are many benefits associated with novated leasing for employers, including:
- Enables employers to save tax on the purchase of their new car at no cost and with no liability to the employer.
- Boost employee morale. Everyone loves work perks, and a novated lease is a great way of rewarding your employees and enhancing their loyalty to your organisation.
- Attract quality employees by having a novated leasing programme. You become an employer of choice, and you can make your job offer more competitive. This incentive provides employees with the opportunity to own their dream car
- Competitive job offer. By allowing an employee to bring their novated lease with them, the car will be revalued for FBT in today's trade value. Therefore, their existing novated lease will be cheaper in their salary package with you. This gives you an immediate boost in a competitive offering.
- Ongoing support. Due to our network we can streamline the administrative process with regards to payments, reporting, compliance, and customer support.
What Role Do Employers Play in Each Novated Lease?
All you need to do is deduct from the employee’s fortnightly/monthly salary is the deductions as advised by Novate My Car. In addition, you will also need to claim back the GST Novate My Car reports.
Who is Responsible for the Car?
The novated lease is in the employee’s name, therefore there is no risk to your business by offering novated leasing.
If an employee leaves your employment, the car goes with the employee and the remaining lease repayments are the employee’s responsibility. As the vehicle is owned by the employee, it isn’t classified as an asset or liability on your balance sheet.
It will be mandatory that the car has comprehensive car insurance. The employee is responsible for any excess payment, which can also be incorporated into their salary package. As the employer, you will not be left to foot the bill!
Is There Any Liability for the Employer?
The novated lease and car are both in the employee’s name. Therefore, the employee is entirely responsible for the vehicle and lease repayments. There is no additional liability to your organization for offering novated leasing to your employees.
What Happens at the End of the Lease?
The employee is presented with three options:
- Upgrade to a new car
- Extend your existing lease
- Pay out the lease
Novated Leasing for Employees
Congratulations on beginning your car buying journey! Novated leasing is car buying made convenient.
Put simply, novated leasing is a form of salary packaging that allows you to pay for your car and all its running costs with pre-tax income. This involves an arrangement administered by Novate My Car, between you, your employer, and the financier.
All your vehicle running expenses are bundles into one regular deduction. This comes out of your income before tax is applied and your salary potentially falls in a lower tax bracket.
How Do I Get My New Car?
- Get approval from your employer to allow you to have a novated lease
- Choose your new car
- Get a quote to see how much you wills ave
- Apply online with the application process for a novated lease
- Drive away and enjoy
What’s the Difference Between a Novated Lease and Owning a Car Outright?
Whether you own your car outright or finance it, your expenses are the same. You still need to pay for fuel, registration, insurance, and all other tunning expenses regardless of how you pay for the car.
However, a novated lease provides you with a range of benefits and support services that aren’t available through any other car buying options. A novated lease allows you to pay for the car and its expenses with pre-tax income whereas owning your car outright means you need to use post tax income.
The benefit of paying with pre-tax income means that your salary could fall into a lower tax backet, saving you on income tax.
How Do I Make Financial Savings with a Novated Lease?
A novated lease allows you to make savings on GST and income tax. You don’t pay GST on the car and running costs. The repayments for the car and your running cost budgets are taken out of your pay before income tax is applied. Tax is then calculated on the leftover amount. This means your annual salary can fall into a lower tax bracket.
Can the Car Be for Private Use Under a Novated Lease?
Yes! You can take out a novated lease on a car that is 100% for private use since the car is registered in your name.
Do I Have to Drive Lots of Kilometers to Benefit from a Novated Lease?
No! You can drive as much as you like and still benefit from a novated lease. We will help you set annual budgets for all your vehicle running costs. These budgets can be adjusted at any time depending on your personal circumstances.
How Do I Access the Funds in my Account?
You can pay for all your fuel, servicing, and running expenses with a Remunerator Fuel Card. This works just like a debit card, so you can access your budgeted funds directly from your account with Novate My Car. If you cannot use your fuel card, you can simply submit your receipts through Novate My Car’s web app and be reimbursed with the funds in your account.
What Do I Have to Do?
All you must do is get your employer to allow you to have a novated lease, choose the car you want, and get a quote to see how much you will save. Once you are happy, buy the car, sign some forms, and get your new car delivered to you.
Interested in Knowing More? Fill Out Our Enquiry Form Today.